Certain charges and fees can increase credit card debt

Some consumers in New Jersey may struggle to manage their credit cards merely because they do not understand the terms used for the different charges. Cards may be subject to charges of which the owner may not even be aware. To effectively manage credit card debt, a knowledge of how it works may prevent getting deeper into debt.

Some credit cards are subject to an annual fee that is charged just for the privilege of owning it, and the charge can be as high as a few hundred dollars. So without even using the card, the holder can be accumulating debt. Small print must always be read because a card advertised as free may only be free for the first year with high annual fees from year two. However, some cards offer valuable rewards, and careful consideration may prove that the annual fee may be worthwhile.

Another term to understand is APR, which stands for annual percentage rate. In short, this is the amount the consumer will be charged for borrowing money from the credit card company. It can also be explained as the interest rate that will be applied to any balances on the cards. Card holders have total control over APR charges because it is only charged when the full balance due is not paid by the due date. Cardholders who pay only the minimum required amount will be accumulating extra debt.

New Jersey consumers who have already reached a stage of facing mountains of credit card debt may find comfort in learning that a bankruptcy filing could provide prompt relief. An immediate stay will be put in place upon filing, and that will end repossessions, wage garnishments, creditor harassment and more. Unsecured debts such as credit card debt and medical debt can be discharged under the U.S. Bankruptcy Code.

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